header_img

Fed Chair Powell Testifies at 9:00

by Archer Financial Services | May 19, 2020

By Alan Bush | Senior Financial Economist at ADMIS   

 

STOCK INDEX FUTURES

Yesterday S&P 500 and Dow futures registered their best day since early April.

Housing starts in April were 891,000 when 968,000 were expected and the more important permits were 1.074 million, which compares to the anticipated 1.033 million.  

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will appear via videoconference before the Senate Banking Committee at 9:00 central time. This testimony is required by the $2 trillion economic relief package that was approved by Congress.

Federal Reserve Chair Powell in his prepared testimony plans to tell lawmakers that the central bank will use its "full range of tools to support the economy.” Treasury Secretary Mnuchin said he expected economic conditions to improve in the second half of the year in his prepared testimony, which was released yesterday afternoon. 

The technical picture continues to improve for stock index futures.

CURRENCY FUTURES

The U.S. dollar is lower for a third day on the belief that the Federal Reserve could do more to stimulate the U.S. economy, especially after Fed Chair Powell’s recent comments. 

The euro currency is higher on news that German economic expectations increased sharply in May, improving for the second month in a row, according to the ZEW economic research institute. The measure of economic expectations rose to 51.0 in May from 28.2 in April, which is much better than economists' forecast of 32.0. 
The president of the ZEW institute said," Optimism is growing that there will be an economic turnaround from summer onwards. This is also reflected in the significant improvement in expectations for individual sectors."   

The Japanese yen is lower on news that there will be an unscheduled Monetary Policy Meeting on Friday, May 22 to discuss monetary control matters.

The Australian dollar is higher after a report showed Australian consumer confidence improved for the seventh straight week last week, rising 2.2%. 

INTEREST RATE MARKET FUTURES 

Federal Reserve speakers today in addition to Fed Chair Powell are Neel Kashkari at 9:00 and Eric Rosengren at 1:00.

The thirty-year Treasury bond futures are in a broadly based congestion pattern, as the main fundamental influences are offsetting. 

SUPPORT & RESISTANCE

June 20 S&P 500
Support    2925.00    Resistance    2978.00 
June 20 U.S. Dollar Index
Support    99.200       Resistance    99.820
June 20 Euro Currency
Support    1.09000     Resistance    1.09880 
June 20 Japanese Yen
Support    .92480        Resistance    .93300
June 20 Canadian Dollar
Support    .71500        Resistance    .72000 
June 20 Australian Dollar
Support    .6500           Resistance    .6572
June 20 Thirty Year Treasury Bonds
Support    177^20       Resistance     179^4
June 20 Gold
Support    1725.0         Resistance    1755.0 
July 20 Copper
Support    2.4000         Resistance    2.4400 
July 20 Crude Oil
Support   31.05            Resistance    33.13

 



For more information about these markets, please contact Alan at 312.242.7911  or via email at alan.bush@admis.com. Thank you.

Would you like to open an account with us? Go to our interactive New Account application at Open an Account. It is fast, saves on postage and it’s green.

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff.  Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright © ADM Investor Services, Inc.

Offers